August natural gas prices were fractionally higher during the initial morning hours but remained under the negative influence of Friday's reversal. Some traders suggested that the natural gas market has resistance at $3.00, a level where is loses its pricing advantage to coal. Friday's EIA storage report showed a smaller than expected injection of 39 bcf. Total storage stands at 3,102 bcf or 22.7% above the 5 year average. Over the last four weeks natural gas storage has increased 225 bcf. The latest Baker Hughes rig count data showed its first weekly increase in nearly two months. Meanwhile, the 6 to 10 day weather maps forecast normal to above normal temperatures throughout the eastern half of the country, and that is expected to keep air-conditioning demand for natural gas at elevated levels.
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